IGO LIMITED — Investor Presentation 2016

Oct 19, 2016

INDEPENDENCE GROUP NL PETER BRADFORD, MANAGING DIRECTOR AND CEO Australian Nickel Conference

20 October 2016

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Cautionary statements & disclaimer

• This presentation has been prepared by Independence Group NL (“IGO”) (ABN 46 092 786 304). It should not be considered as an offer or invitation to subscribe for or purchase any securities in IGO or as an inducement to make an offer or invitation with respect to those securities in any jurisdiction.

• This presentation contains general summary information about IGO. The information, opinions or conclusions expressed in the course of this presentation should be read in conjunction with IGO’s other periodic and continuous disclosure announcements lodged with the ASX, which are available on the IGO website. No representation or warranty, express or implied, is made in relation to the fairness, accuracy or completeness of the information, opinions and conclusions expressed in this presentation.

• This presentation includes forward looking information regarding future events, conditions, circumstances and the future financial performance of IGO. Often, but not always, forward looking statements can be identified by the use of forward looking words such as "may", "will", "expect", "intend", "plan", "estimate", "anticipate", "continue" and "guidance", or other similar words and may include statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs. Such forecasts, projections and information are not a guarantee of future performance and involve unknown risks and uncertainties, many of which are beyond IGO’s control, which may cause actual results and developments to differ materially from those expressed or implied. Further details of these risks are set out below. All references to future production and production guidance made in relation to IGO are subject to the completion of all necessary feasibility studies, permit applications and approvals, construction, financing arrangements and access to the necessary infrastructure. Where such a reference is made, it should be read subject to this paragraph and in conjunction with further information about the Mineral Resources and Ore Reserves, as well as any Competent Persons' Statements included in periodic and continuous disclosure announcements lodged with the ASX. Forward looking statements in this presentation only apply at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information IGO does not undertake any obligation to publically update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

• There are a number of risks specific to IGO and of a general nature which may affect the future operating and financial performance of IGO and the value of an investment in IGO including and not limited to economic conditions, stock market fluctuations, commodity demand and price movements, access to infrastructure, timing of environmental approvals, regulatory risks, operational risks, reliance on key personnel, reserve and resource estimations, native title and title risks, foreign currency fluctuations and mining development, construction and commissioning risk. The production guidance in this presentation is subject to risks specific to IGO and of a general nature which may affect the future operating and financial performance of IGO.

• Any references to IGO Mineral Resource and Ore Reserve estimates, except the Nova Ore Reserve should be read in conjunction with IGO’s 2016 Mineral Resource and Ore Reserve announcement dated 14 October 2016 and lodged with the ASX, which are available on the IGO website.

• All currency amounts in Australian Dollars unless otherwise noted.

• Cash Costs are reported inclusive of Royalties and after by-product credits on per unit of payable metal basis, unless otherwise stated

• IGO reports All-in Sustaining Costs (AISC) per ounce of gold for its 30% interest in the Tropicana Gold Mine using the World Gold Council guidelines for AISC. The World Gold Council guidelines publication was released via press release on 27th June 2013 and is available from the World Gold Council’s website.

• Underlying EBITDA is a non-IFRS measure and comprises net profit or loss after tax, adjusted to exclude tax expense, finance costs, interest income, asset impairments, depreciation and amortisation, and once-off transaction costs.

• Underlying NPAT comprises net profit (loss) after tax adjusted for; post tax effect of acquisition and integration costs, and impairments.

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Investment highlights

Australian diversified mining company (ASX:IGO)

QUALITY DIVERSIFIED ASSETS

• Three operating mines in Western Australia

• Diversified portfolio with exposure to gold, nickel, zinc, copper, cobalt and silver

 Focus on high-margin assets that deliver cash flow thru the commodity price cycle

• Commissioning the world-class Nova nickel, copper and cobalt Project

LEADING GROWTH PORTFOLIO

• Process plant expansion completed at Tropicana Gold Mine

• Unlocking step change to Tropicana through resource extension drilling and Long Island Study

 Controlling ground position in three emerging belt scale exploration opportunities

STRONG AND CONSISTENT OPERATIONAL PERFORMANCE

• Focus on operational excellence to optimise and maximise our assets

• Track record of delivery and value creation

• Proven and experienced management team and Board – with disciplined approach

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IGO assets

Consistent high-margin production with platform for growth

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• DISCOVERY PROJECT DEVELOPMENT OPERATIONS

•   Generative exploration to deliver Commissioning of the world-class Tropicana (Au) organic growth Nova Ni-Cu-Co Project •  Albany Fraser/ Tropicana Tropicana Long Island Study –  Long (Ni)

• • likely to deliver material stepLake Mackay change to the Tropicana Gold Mine

• Bryah Basin

• Jaguar (Zn- Cu)

• Brownfields exploration to deliver scale and mine life extensions

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A leading Australian growth platform
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Market profile

Strong domestic institutional support + growing international profile

Corporate Structure

Share Ownership

• Shares on issue: 587M

• Share price 52 Week Range:

• Low A$1.98 20 January 2016

• High A$4.49 14 July 2016

• Share price: A$4.08[(1)]

• Average Daily Volume: 4.6M per day over 3 months

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Price ($) Volume (M)
5.00 14
4.50
12
4.00
3.50 10
3.00
8
2.50
6
2.00
1.50 4
1.00
2
0.50
- -
20-Oct-15 20-Nov-15 20-Dec-15 20-Jan-16 20-Feb-16 20-Mar-16 20-Apr-16 20-May-16 20-Jun-16 20-Jul-16 20-Aug-16 20-Sep-16
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|||||
|---|---|---|---|
|•|
|Substantial Holders|[(2)]|
||Mark Creasy|17%|
||Van Eck|12%|
||FIL Limited|10%|
||Australian Super|6%|
||Ausbil|5%|
|•|
|Institutional Ownership|[(2)]|
||Australia|69%|
||USA & Canada|19%|
||UK & Europe|3%|
||Rest|9%|
|27%|
|32%|
|68%|
|73%|
|Instos|Retail & Other|Domestic Instos|International Instos|

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1) As at market close 19 October 2016

2) As at 19 September 2016

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Balance sheet and funding

Strong balance sheet with pro-forma net cash of A$50M

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Pro-forma cash of A$325M [(2)]
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Debt drawn of A$271M [(1)]
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A$279M undrawn debt facilities [(1)]
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Nova Plant
construction
complete [(3)]
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Nova Ore
commissioning
underway [(3)]
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Tropicana mill
expansion to
7.5Mtpa
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• 1) Refer ASX release 27 July 2016 – June 2016 Quarter Results Presentation

• 2) Comprises $46M at 30 June 2016 (see ASX release 27 July 2016 – June 2016 Quarter Results Presentation) and A$274M raised from Institutional Placement and Share Purchase Plan (see ASX releases dated 28 July 2016 and 26 August 2016)

• 3) For further information see ASX release 17 October 2016 Ore Commissioning commences ahead of schedule at Nova Project

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IGO portfolio on a page Strong platform of growth

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A$M Macquarie Research EBITDA Profile A$M
600 600
500 500
400 400
300 300
200 200
100 100
0 0
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17e FY18e FY19e FY20e
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Western Australia
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Long (A$M) Jaguar (A$M) Tropicana (A$M) Nova (A$M)

Realising Value Through

• Development of the world class Nova Project

• Optimising Nova and reducing operating risks

• Tropicana process plant expansion to lift throughput rate +21%

• Tropicana Long Island Study to provide potential for a step change reduction in mining costs

• Committed to exploring a portfolio of brownfields and greenfields exploration projects

• Exploring belt scale opportunities for tier one assets

1) Source Data: Macquarie Research

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Nova Project World class Ni-Cu-Co project

IGO 100% magmatic Ni – Cu 1.5Mtpa underground mine Overview Process plant complete Ore commissioning underway Resource 30 June 2016[(1)] 325,000t Ni, 134,000t Cu Reserve 30 June 2016[(1)] 275,000t Ni, 112,000t Cu 9,000 to 10,000t Ni, Production Guidance FY17 3,900 to 4,400t Cu Operating Cost Guidance FY17 A$4.00 to 4.50/lb Initial Capital Remaining A$140 to 150M (including working capital)[(2)] Sustaining Development Capital Guidance FY17 A$3 to 5M A$22 to 25M Exploration Budget Guidance FY17 A$3.5 to 4.5M

Key developments and potential

• IGO has delivered 51% improvement in NPV since acquisition[(3)]

• Acceleration of Bollinger development

• Process plant commissioning underway

• Significant near mine and regional exploration potential

• 1) Resources shown are inclusive of Reserves, For further information on Mineral Resources and Ore Reserves refer to ASX release dated 14 October 2016

• 2) As at 30June 2016

• 3) For further information see ASX release 21 July 2016 Accelerated Bollinger Decline at Nova Project

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Nova Project

Ore commissioning commenced four weeks ahead of schedule

• Preliminary operating guidance for Nova provided through to FY19

• Additional opportunities exist to improve mining production and processing rates

• These further enhancements will be pursued following commissioning and ramp up

	Units	FY17(1)	FY18	FY19
Nickel Production tonnes 9,000 to 10,000 27,000 to 30,000 27,000 to 30,000
Copper Production tonnes 3,900 to 4,400 12,000 to 13,000 12,000 to 13,000
Cobalt Production tonnes 280 to 320 900 to 1,000 900 to 1,000
Cash costs (real)(2) A$/lb Ni 4.00 to 4.50 1.50 to 2.00 1.50 to 2.00
Remaining Initial Capital Cost(3) A$M 140 to 150 0 0
Sustaining Capex A$M 3 to 5 25 to 30(4) 5 to 7(4)
Development Capex A$M 22 to 25
Exploration expenditure A$M 3.5 to 4.5

Flotation at Nova 14 October 2016

• 1) FY17 excludes production achieved during commissioning

• 2) Cash costs includes C1 cash costs + royalty per pound of payable nickel (after by-product credits)

• 3) Remaining Initial Capital Costs includes the key capital activities (outstanding from the $443M Project Capital Costs) outlined in the company’s 28 June 2016 release titled “First Ore Mine in Development at Nova” including but not limited to capital on, the power station, plant piping/ electronical, past plant and decline development. The amount also includes capital required for the Bollinger Decline as outlined in this ASX release

• 4) Sustaining capex includes Development capex

Note: for further information on Nova production guidance see ASX release 21 July 2016 Accelerated Bollinger Decline at Nova Project and also refer to Important notices and disclaimer

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Nova Project

Significant value unlocked with improved mining flexibility

Further value unlocked at Nova through

• Optimisation Study, December 2015[(1)]

• Accelerated Development of Bollinger, July 2016[(2)]

A cumulative 51% increase in NPV relative to the DFS unlocked through:

• Improved mining schedule and sequencing to prioritise higher-value ore early in the mine life

• Accelerated ramp-up to fill the processing plant earlier

• Capturing current contracted rates and forecast operating cost structure

Nickel Cost Curve

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Nova – Optimisation Study
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Cumulative value enhancement since acquisition[(1)(2)]

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160%
140% 16%
120%
35%
100%
80%
151%
60%
100%
40%
20%
-
DFS Optimisation Study Accelerated Bollinger Total Value added to
(Dec-15) Decline Nova Project
(Jul-16)
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1) For further information see ASX release 14 December 2015, Nova Project Optimisation Study

2) For further information see ASX release 21 July 2016, Accelerated Bollinger Decline at Nova Project

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Nova Project Accelerated development of the Bollinger Decline

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Nova Mining Schedule
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Nova Project In mine and brownfields exploration opportunities

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• Areas identified and prioritised for in mine exploration

• Untested geophysical targets

• Potential to extend known Mineral Resources

• Some areas require additional work to define targets

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Long Mine High grade underground nickel on the Kambalda dome

IGO 100% high-margin underground nickel Overview Average grade project to date of 3.8% Ni Consistent low cost producer Resource 30 June 2016[(1)] 66,000t Ni Reserve 30 June 2016[(1)] 14,000t Ni Production Guidance FY17 7,400 to 8,200t Ni Operating cost Guidance FY17 A$3.50 to 3.90/lb Capital Guidance FY17 A$1M Exploration Budget Guidance FY17 A$2 to 3M

Key developments and potential

• Operations focused on open stope mining delivering better productivity and lower costs

• High margin mine

• Recommenced in-mine exploration

• 1) Resources shown are inclusive of Reserves, For further information on Mineral Resources and Ore Reserves refer to ASX release dated 14 October 2016

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Jaguar Mine

VMS Corridor with cluster of orebodies

Overview IGO 100% High grade Underground Cu – Zn VMS Resource 30 June 2016[(1)] 51,000t Cu, 256,000t Zn & 13.1Moz Ag Reserve 30 June 2016[(1)] 16,000t Cu, 137,000t Zn & 6.7Moz Ag 39,000 to 43,000t Zn in concentrate Production Guidance FY17 4,600 to 5,100t Cu in concentrate Payable Cash cost Operating cost Guidance FY17 A$0.70 to 0.80/lb Zn Sustaining Development Capital Guidance FY17 A$8 to 9M A$12 to 13M Exploration Budget Guidance A$3 to 4M FY17

Key developments and potential

• Record mining and milling rates since project inception achieved in FY16

• Bentley Mineral Resources open down plunge

• Opportunities to extend and test new areas of prospective stratigraphy identified

• 1) Resources shown are inclusive of Reserves, For further information on Mineral Resources and Ore Reserves refer to ASX release dated 14 October 2016

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Tropicana Gold Mine

One of Australia’s leading open-pit gold mines

JV IGO 30% with AngloGold Ashanti 70% Overview Open pit with potential for expansion 7+ years current LOM Resource 30 June 2016[(1)] 7.5Moz (100%) 2.2Moz (30%) Reserve 30 June 201)[(1)] 2.4Moz (100%) 0.7Moz (30%) (100%) (30%) Production Guidance FY17 390 to 430koz pa 117 to 129koz pa Cash cost All-in Sustaining cost Operating cost Guidance FY17 A$850 to 950/oz A$1,150 to 1,250/oz Sustaining Improvement Waste Stripping Capital Guidance FY17 A$2 to 3M A$2 to 3M A$29 to 36M Exploration Budget Guidance FY17 A$6 to 8M (30%)

Key developments and potential

• Converted to gas power generation in January 2016

• Plant expansion nearing completion from 5.8Mtpa to 7.5 Mtpa processing rates

• Resource drilling identifying significant extensions to mineralisation

• Long Island Study targeted at delivering material step-change opportunities[(2)]

• 1) Resources shown are inclusive of Reserves, For further information on Mineral Resources and Ore Reserves refer to ASX release dated 14 October 2016 2) For further information see ASX release 25 July 2016 – Tropicana – Delineation of new high-grade shoot

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Tropicana pits Four contiguous pits extending over a five kilometre strike

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Tropicana near mine exploration

Long Island Study mining concept

100km drilling completed beneath existing pits

• Positive results at Boston Shaker, Havana and Havana South

• New high grade shoot at Havana South

• Long Island study targeting step change to mine life • Based on strip mining and in-pit dumping of waste

• Ore Reserve and Technical Study to be completed end-CY16

• Expect to be self funding through operating cash flow

Latest concept – August 2016

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For further information see ASX release 25 July 2016 Tropicana – Delineation of new high-grade shoot

Tropicana regional exploration

Leveraging knowledge from operations

• Tropicana hosts a unique style of mineralisation

• Using innovative exploration and knowledge transfer from mine geology

• Improved understanding on the mineralisation controls

• JV committed to realising the full exploration potential

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Exploration

IGO remains committed to delivering growth through exploration

A$33M exploration budgeted across portfolio

• Targeting provinces that can deliver multiple gold and base metals projects

• Increasing focus on generative and greenfields projects

FY17 Exploration Budget

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21%
48%
8%
11%
12%
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Tropicana

Long

Jaguar

Nova

Generative & Projects

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Sustainability Continued strengthening and improvement across the business

ACSI Assessment of IGO’s Sustainability Reporting

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IGO Summary

Diversified mining company delivering cash flow and growth

QUALITY DIVERSIFIED ASSETS

Outlook and catalysts for value recognition

• Tropicana processing capacity to reach 7.0 – 7.5Mtpa

• Long Island Study results throughout H1 FY17

• Nova ore commissioning and first concentrate production

LEADING GROWTH PORTFOLIO

• Access drilling positions to commence in mine exploration around the Nova orebody

• Commitment to explore a portfolio of brownfields and greenfields exploration projects

STRONG AND CONSISTENT OPERATIONAL PERFORMANCE

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